School of Informatics

Department of Information Technology

Course: Information System Management
Course Code: (MSIT 7103)
Degree Program: MSc IT Year 2 Sem II

Compiled by: Siraj Sebhatu (PhD)


 E-mail – [email protected]

9:32:15 AM 1 1
Management Information System
MSIT 7103

Chapter 03
Organizing Data and
Information

2
 Principles and Learning Objectives
 Data management and modeling are key aspects of organizing
data and information.
 Define general data management concepts and terms, highlighting
the advantages of the database approach to data management.
 Describe the relational database model and outline its basic
features.

 A well-designed and well-managed database is an extremely

valuable tool in supporting decision making.
 Identify the common functions performed by all database
management systems and identify popular user database
management systems.

 The number and types of database applications will continue

to evolve and yield real business benefits.
 Identify and briefly discuss current database applications
3
Organizations and Information Systems
 Organizations and information systems have a mutual
influence on each other.
 The information needs of an organization affect the
design of information systems and an organization
must be open itself to the influences of information
systems in order to more fully benefit from new
technologies.
 The organization's environment, culture, structure,
standard operating procedures, politics and
management decisions are mediating factors that
influence the interaction between information
technology and organizations.

4
Organizations and Information Systems

This complex two-way

relationship is mediated
by many factors, not
the least of which are
the decisions made—or
not made—by
managers.

Other factors mediating

the relationship include
the organizational
culture, structure,
politics, business
processes, and
environment.
FIGURE 3- THE TWO-WAY RELATIONSHIP BETWEEN
ORGANIZATIONS AND INFORMATION TECHNOLOGY

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Technical view
 From a technical view, an organization is a formal,
legal, social structure that processes resources, or
inputs, to produce outputs.
 The firm is seen as infinitely malleable, with
capital and labor substituting for each other quite
easily.

FIGURE 3-2 THE TECHNICAL MICROECONOMIC DEFINITION

OF THE ORGANIZATION

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Technical view
 In the microeconomic definition of organizations,
capital and labor (the primary production factors
provided by the environment) are transformed by
the firm through the production process into
products and services (outputs to the
environment).

 The products and services are consumed by the

environment, which supplies additional capital and
labor as inputs in the feedback loop.

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Behavioral view
 A behavioral definition of an organization is that it is a
collection of rights, privileges, obligations, and
responsibilities that is balanced over time through
conflict and conflict resolution.
 This definition suggests that building new information
systems or rebuilding old ones involves much more
than a technical rearrangement of machines or
workers.
 Technological change requires changes in who owns
and controls information, who has the right to access
and update that information, and who makes decisions
about whom, when, and how.

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 The technical and behavioral views of organizations
complement one another.
 The technical definition describes how thousands of
firms in competitive markets combine capital and
labor with information technology, whereas the
behavioral model describes how technology affects
the organization's inner workings.

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10
Organizations and Information Systems
 All modern organizations can be seen as bureaucracies which
share some essential characteristics: clear division of labor,
hierarchy, explicit rules and procedures, impartial judgments,
technical qualifications for positions, and maximum
organizational efficiency.
 Additionally, all organizations develop routines and business
procedures, politics, and cultures.
 Business processes are collections of routines, or standard
operating procedures (SOPs), which enable a firm's efficiency.

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Organizations and Information Systems
 All organizations are composed of individual
routines and behaviors, a collection of which make
up a business process.
 A collection of business processes make up the
business firm.
 New information system applications require that
individual routines and business processes change
to achieve high levels of organizational
performance.

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13
Organizations and Information Systems
 Organizational politics reflects the political struggles due to
divergent concerns and perspectives of individuals and groups
within the organization. Political resistance is one of the great
difficulties of bringing about organizational change.
Organizational culture is the set of fundamental assumptions
about what products the organization should produce, how it
should produce them, where, and for whom. Organizational
culture is a powerful unifying force that restrains political
conflict. However, technological change that threatens
commonly held cultural assumptions usually meets great
resistance.
No two organizations are identical. Organizations have different
structures, goals, constituencies, leadership styles, tasks, and
surrounding environments. Differences in these characteristics
will affect the type of information systems used by the
organization.
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Organizations and Information Systems
 Organizations have different social and physical environments,
which exert a powerful influence on the organization's structure.
 Information systems help organizations respond to their
surrounding environments, from which they draw resources and
to which they supply goods and services.
 Information systems are key tools for environmental scanning,
helping managers identify external changes that might require
an organizational response.
 Environments shape what organizations can do, but
organizations can influence their environments and decide to
change environments altogether. Information technology plays a
critical role in helping organizations perceive environmental
change and in helping organizations act on their environment.

FIGURE 3- ENVIRONMENTS AND

ORGANIZATIONS HAVE
RECIPROCAL RELATIONSHIPS

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16
 Data management and modeling are key
aspects of organizing data and
information.

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 Data
 Data
 It is necessary for almost any enterprise to carry out its business.
Consists of raw facts, and when organized may be transformed
into information.
 Database
 A collection of data organized to meet users’ needs.
 Database management system (DBMS)
 A group of programs that manipulate the database and provide an
interface between the database and the user of the database or
other application programs.
 Database administrator (DBA): Skilled IS professional who
directs all activities related to an organization’s database.

Without data and the ability to process it, an organization could

not successfully complete most business activities. 18
 DBMS ‘Discussion’ (1)
 A collection of programs that enables you to store, modify, and
extract information from a database.
 The following are examples of database applications:
 Computerized library systems
 Automated teller machines
 Flight reservation systems
 Computerized parts inventory systems

 From a technical standpoint, DBMSs can differ widely.

 The terms relational, network, flat, and hierarchical all refer to the
way a DBMS organizes information internally.
 The internal organization can affect how quickly and flexibly you can
extract information.

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 DBMS ‘Discussion’ (2)
Requests for information from a database are made in the form of a
query, which is a formal question. For example, the query

SELECT ALL WHERE NAME = "SMITH" AND AGE > 35

requests all records in which the NAME field is SMITH and the AGE
field is greater than 35.

 The set of rules for constructing queries is known as a query

language.

 Different DBMSs support different query languages, although there is

a semi-standardized query language called SQL (structured query
language).
 Sophisticated languages for managing database systems are called
fourth-generation languages, or 4GLs for short.
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The Hierarchy of Data
 Bit (a binary digit): represents a circuit that is either on or off.
 Byte: typically made up of eight bits.
 Character: a byte represents a character; the basic building
block of information
 Can be an uppercase letter, lowercase letter, numeric digit, or
special symbol
 Field: typically a name, number, or combination of characters
that describes an aspect of a business object or activity
 Record: collection of related data fields
 File: collection of related records
 Database: collection of integrated and related files
 Hierarchy of data
 Bits, characters, fields, records, files, and databases
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The Hierarchy of Data (continued)

ICT Infrastructure and Information System Management 22

Data Entities, Attributes, and Keys
 Entity: generalized class of people, places, or things (objects)
for which data is collected, stored, and maintained.
 Attribute: characteristic of an entity.
 Data item: specific value of an attribute.
 Key: field or set of fields in a record that is used to identify the
record.
 Primary key: field or set of fields that uniquely identifies the
record.

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 The Traditional Approach
 The traditional approach…
 Separate files are created and stored for each application
program.
Data Files Application Users
programs
Payroll Reports
Payroll programs

Invoicing Reports
Invoicing programs

Inventory
Inventory control Reports
control programs
Management
Management inquiries Reports
inquiries programs
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 Database Approach
 The database approach…
 A pool of related data is shared by multiple application programs.
 Rather than having separate data files, each application uses a
collection of data that is either joined or related in the database.

Payroll Reports
program
Payroll data

Inventory Inventory
data program Reports
Database
management
Invoicing system
Data Invoicing
Reports
program
Other
data Other Reports
programs

Database Interface Applications programs Users 25

Advantages
 Improved strategic use of corporate data : Accurate,
Complete, Up-to-date data can be made available to decision
makers where, when, and in the form they need it.
The database approach can also give greater visibility to the
organization’s data resource.

 Reduced data redundancy: Data is organized by the DBMS

and stored in one location. This results in more efficient use of
system storage space.
 Improved data integrity: With the transactional approach,
some changes to data were not reflected in all copies of the data
kept in separate files.
This is prevented with the database approach because no
separate files contain copies of the same piece of data.

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Advantages
 Easier modification and updating: The DBMS co-ordinates
updates and modifications.
Programmers and users do not have to know where the data is
physically stored.
Data is stored modified once.
Modifications and updating is also easier because the data is
stored in only one location in most cases.
 Data and program independence: The DBMS organizes the
data independently on the application program, so the
application program is not affected by the location or type of
data.
Introduction of new data type not relevant to particular
application does not require re-writing that application to
maintain compatibility with the data file.

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Advantages
 Better access to data and information : Most DBMSs have
software that make it easy to access and retrieve data from a
database.
In most cases, users give simple commands to get important
information. Relationships between records can be more easily
investigated and exploited, and applications can be more easily
combined.
 Standardization of data access : All application programs use
the same overall procedures to retrieve data and information.
 A framework for program development: Standardized
database access can provide a consistent framework for
program development.
In addition, each application program need address only the
DBMS, not the actual data file, reducing application development
time.
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Advantages
 Better overall protection of the data : Accessing and using
centrally located data is easier to monitor and control.
Security codes and passwords can ensure that only authorized
people have access to particular data and information in the
database. Thus ensuring privacy.
 Shared data and information resources : The cost of
hardware, software, and personnel can be spread over many
applications and users.
This is a primary feature of a DBMS.

Disadvantages
 Relatively high cost of purchasing and operating a DBMS
in a mainframe operating environment.
 Increased cost of specialized staff.

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 Issues to be considered by the
organization while modelling Data
 When building a database, an organization must consider:
 Content: What data should be collected and at what cost?

 Access: What data should be provided to which users and

when?
 Logical structure: How should data be arranged, so that it
makes sense to a given user?
 Physical organization: Where should data be physically
located?
 Building a database requires two types of designs
 Logical design: The model, how the data should be structured
and arranged to meet an organization’s information needs.
 Physical design: Starts from the logical database design and
fine-tunes it for performance and cost considerations.
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 The Three-Level Database Model:
 Level 1 - The external,
conceptual, or local level,
containing the various
“user views” of the
corporate data that each
application program uses.

 Level 2 - The logical or

“enterprise data” level.

 Level 3 - The physical or

storage level, specifying
the way the data is
physically stored.

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 Data Modelling

Data model
 A map or diagram of
entities and their
relationships.
Enterprise data modeling
 Data modeling done at
the level of the entire
organization.
Entity-relationship (ER)
diagrams
 A data model that uses
basic graphical symbols
to show the organization
relationships between
data.
An Entity-Relationship (ER) Diagram for
a Customer Order Database
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 The Data Models
 Methods to structure data to represent the real world
and the way data is accessed
Based on relationships among types of data items.

 From ISM, the key issue to know are the data model
options we have and their specific strengths and
weaknesses:
 Hierarchical model,
 Network model,

 Relational model

 Object model

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 Hierarchical Database Model
 Hierarchical database model
 A data model in which data are organized in a top-down, or
inverted tree structure.
Project 1

Department A Department B Department C

Employee Employee Employee Employee Employee Employee

1 2 3 4 5 6
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Network Data Model
 Network data model
 An expansion of the hierarchical database model
with an owner-member relationship in which a
member may have many owners.

Project 1 Project 2

Department A Department C
Department B

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 Object Data Model
 Can be used to store any type of data, whether a
Traditional name or address, An entire spreadsheet, A
video clip, A voice annotation, A photograph, or A
segment of music.

 Include two other major concepts

 Object management
 Management of complex kinds of data such as
multimedia and procedures.
 Knowledge management
 Management of large numbers of complex rules
for reasoning and maintaining integrity
constraints between data.
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 Relational Data Model
 All data elements are placed in two-dimensional tables, called
relations, that are the logical equivalent of files. Relational
systems allow people to create relationships among data, they
are much more flexible.
Data Table 1: Project Table Data Table 2: Department Table

Project Number Description Dept. Number Dept. Number Dept. Name Manager SSN

155 Payroll 257 257 Accounting 421-55-99993

498 Widgets 632 632 Manufacturing 765-00-3192

226 Sales manager 598 598 Marketing 098-40-1370

Data Table 3: Manager Table

SSN Last Name First Name Hire Date Dept. Number

005-10-6321 Johns Francine 10-7-65 257

549-77-1001 Buckley Bill 2-17-79 650

098-40-1370 Fiske Steven 1-5-85 598

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Linking Data Tables to Answer an Inquiry

Project Number Description Dept. Number

155 Payroll 257
498 Widgets 632
226 Sales manager 598

Dept. Number Dept. Name Manager SSN

257 Accounting 421-55-99993
632 Manufacturing 765-00-3192
598 Marketing 098-40-1370

SSN Last Name First Name Hire Date Dept. Number

005-10-6321 Johns Francine 10-7-65 257
549-77-1001 Buckley Bill 2-17-79 650
098-40-1370 Fiske Steven 1-5-85 598

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Data Dictionary
 Data Dictionary
 A detailed description of all data used in the database.

 Provide a standard definition of

terms and data elements.
 Assist programmers in
designing and writing
programs.
 Simplify database modification

 Reduce data redundancy.

 Increase data reliability.

 Faster program development.

 Easier modification of data and

information.
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 Managing data/information resources:
Information:
 Information is data in context, i.e., the data has been given an explicit
meaning in a specific context such as a company.
 Once enterprises get their data into shape, that data can more easily be
turned into information, which is a critical activity.
 Four Types of Information
 Internal record-based information, containing mainly
facts about entities, such as patients, vehicles, and parts found in
data records of databases.
 Internal document-based information, such as reports, opinions,
e-mails, proposals, messages, and video and audio clips,
containing concepts such as ideas, thoughts, and opinions.
 External/record-based information, such as acquisition
from external databases.
 External/document-based: WWW 40
 Managing data/information resources:...Cont.
 Managing record-based information
 Internal record-based information was the original focus of IS
departments because it is the type of information that computer
applications generate and manage easily.
 The main technology and approach used to managing record-
based information is Data Warehouses.
 Data warehouse
 A relational database management system designed specifically
to support management decision making.
 Current evolution of Decision Support Systems (DSSs).
 Data mart
 A subset of a data warehouse for small and medium-size
businesses or departments within larger companies.
 Unlike transaction databases, data warehouses are used with
tools for exploring the data, such as data mining.
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 Elements of Data Warehouse
Relational
databases

Data
Hierarchical extraction
databases process

Network
databases Data
cleanup
process
Flat files

Spreadsheets Data
End user access wharehouse

Query and
analysis
tools 42
 Cont.
Managing record-based information
Data mining:
 The automated discovery of patterns and relationships in a data
warehouse.
 Data mining applications
 Market segmentation ,Customer queries.
 Fraud detection, Direct marketing.

 Market basket analysis. Trend analysis.

 to generate new insights into customer behavior, internal

operations, product mixes and the like (reporting internal
data).
On-line analytic processing (OLAP)
 Access to multidimensional databases providing managerially
useful display techniques.
 Now used to store and deliver data warehouse information.
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 Managing data/information resources:...

Managing document-based information (internal)

 Most of the valuable information of organizations is in documents
such as business forms, reports, letters, memos, policy statements,
contracts, agreements, business plans, proposals, and so on.
 Most of organizations’ important business processes are also based
on are driven by document flows.
 There is also a need to move faultlessly between digital and printed
versions of documents; hence, document management is important

 A document can be described as a unit of “recorded information

structured for human consumption”
 The field of Electronic Document Management (EDM) uses new
technologies to organize and manage conceptual, descriptive.

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 Managing data/information resources:...

Managing document-based information (internal)

 The major values of EDM applications are three.

They are
1. To improve the publishing process
2. To support organizational processes
3. To support communications among people and
groups

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 Managing data/information resources:...
Managing Record-
based information
(External)
Distributed Databases:
 Acquisition from external
databases.
 A database in which
the actual data may
be spread across
several smaller
databases connected
via
telecommunications
devices.
46
 Cont.

 Managing document-based information (internal &

External)
 The other form of document-based information is web content –
WWW.
 Content management deals with managing web-based content
of all types The content on websites attracts customers, answers
questions, and handles transactions, which make it a critical
corporate resource.

 The content management life cycle:

 Managing Content Creation and Acquisition

 Content Administration and Safeguarding

 Content Deployment and Presentation

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Cont.
 Managing document-based information (internal &
External)
 Managing Content Creation and Acquisition

 The importance of this phase is creating content

quality.
 The best organizational structure is to distribute
content creation and maintenance (keeping it fresh
and updated) to content-expert employees
(employees in HR, marketing, sales and field offices)
 To improve content quality, it is also necessary to
create a feedback loop so that comments from web
site visitors reach the content creators.

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 Managing data/information resources:
Knowledge:
 Knowledge is information with direction or determined, where
committed is derived from strategies or objectives.

 Knowledge is a fluid mix of framed experience, values,

contextual information, and expert insight that provides a
framework for evaluating and incorporating new experiences
and information. It originates and is applied in the business
organization.

 In ISM context, managing knowledge means

encouraging people to share knowledge personally
and to put their knowledge in a form that others can
easily access.

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Cont.
 Knowledge exists in two states, tacit and explicit, and
effective knowledge management requires transferring
knowledge between these two states [Nonaka’s model
of KM]
1. Tacit knowledge exists within a person’s mind
and is private and unique to each person.
2. Explicit knowledge has been expressed, codified,
and made public.
Ways to transfer knowledge back and forth between its
tacit and explicit states are generally a result of
encouraging the free flow of ideas and information,
something that organizational norms, departmental
boundaries, and national differences can inhibit. 50
A Model for Managing Knowledge
 A number of KM models exist:
 One proposed model of managing knowledge is circular with four
stages, which represent what people generally do with knowledge
1. Knowledge Creation and Capture
2. Knowledge Organization and Categorization
3. Knowledge Distribution and Access
4. Knowledge Absorption and Reuse

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 Managing data/information resources: knowledge

 A Model for Managing Knowledge

1. Knowledge Creation and Capture
 Deals with generating knowledge, either by
encouraging employees to create it or by acquiring
it from outside.
 Uses high-touch approaches such as creating a
sharing culture, advising people to meet either in
person or electronically, and encouraging
innovations.
2. Knowledge Organization and Categorization
 Often handled by creating best practices knowledge
bases or metadata indexes for documents. [high-
tech approaches]
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 Managing data/information resources: knowledge
 A Model for Managing Knowledge
3. Knowledge Distribution and Access
 Emphasizes both “pushing” knowledge out to users
(distribution) and accommodating users who “pull”
information to themselves (access).
 Uses high-tech approaches, such as implementing networks
and networking tools to access human and structural capital.
 Intranets and groupware were important IT-based tools.
4. Knowledge Absorption and Reuse
 Deals with getting knowledge into people’s heads where it
can be enhanced and reused.
 Uses high-touch approaches focusing on promotion,
interactions among people, recognizing the knowledge
brokers who exist in companies, and supporting
communities of practice.
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Outcomes of the four stages of managing
knowledge

 These four stages create three types of organizational intellectual capital:

1. Human capital
2. Structural capital, and
3. Customer capital
1. Building Human Capital
 The emphasis in building human capital is to answer the
question, “how do we get people to have more knowledge in
their heads? …four ways: create it, capture it, absorb it, and
reuse it.
 Human capital is the knowledge, skills, and innovativeness of
employees as well as company values, culture, and
philosophy.
 Creating knowledge focuses on getting people together to share
knowledge.
 Knowledge creation, Capture, absorption and reuse stages are the
appropriate stages of managing knowledge for creating the
human capital. 54
Cont.
2. Building structural Capital
 The emphasis in building structural capital is to
move knowledge from people’s heads to a tangible
company asset [to increase their value].
 Structural capital is the capabilities embedded in
hardware, software, databases, organizational
structure, patents, and trademarks that support
employees as well as relationships with customers.
 Knowledge organization, categorization, knowledge
distribution and access are the appropriate stages of
the model of managing knowledge for creating
structural capital.
 Companies that emphasized building structural
capital generally use high-tech approaches.
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 Managing data/information resources:
knowledge
3. Building Customer Capital
 Customer capital is the strength of a company’s franchise with its
customers. It is concerned with its relationships and networks of
associates.
 When customers are familiar with a company’s products or
services, the company can call that familiarity customer
capital.
 Knowledge Creation and Capture is the main stage of the model
of managing knowledge in creating building customer capital.

4. The Cultural Side of Knowledge Management

 Success in knowledge management comes as much from
changing organizational behavior, which leads to
implementing new technology.

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Information systems organizing
 An IS directs an organization towards its strategic goals.
 The chief information officer (CIO) is at the top of an IS organization.
 CIO is the executive responsible for managing IT resources for enterprise
goals.
 CIO is member of an enterprise’s executive team.
 CIO is a relatively new post compared to CEO and CFO.
 With the boom of the internet, CIO have become an integral component of
strategy making process.
 CIOs should have strong perception about business and technology.
 The scope and depth of the CIO are expanding.

 CIO’s role is usually tough to accomplish alone.

 Certain strategic areas of IS organization need more guidance 
creation of new posts like Chief Technology Officer (CTO), Chief
Knowledge Officer (CKO), Chief Network Officer (CNO) and others.
Each of these posts are subordinates to CIO

CIOs have 12 main roles @ Reading Assignment

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